NEW DELHI: The Competition Commission of India (CCI) has written to Religare Enterprises (REL) seeking information whether the Burmans had sought a merger involving the company, proposed to get involved in its management or have representation on its board.
The Burman Family of FMCG major Dabur is the biggest shareholder of REL. According to people aware of the development, CCI has sought all the communication documents exchanged between the two parties from October 13, 2017 to September 25, 2023.
According to a report in a financial daily, Religare has reportedly stated that there have been no communication with the Burmans over a merger or management of the company’s affairs but their actions show an intention to gain control of the company.
The report noted that Burmans did not inform CCI about their initial acquisition of the Religare shares but have now sought approval for their proposed purchase of 5% stake through secondary market transactions and the planned open offer to buy 26% from the company’s public shareholders.
Religare board, led by Chairperson Rashmi Saluja, has accused the Burman family of market manipulation and their involvement in “frauds and financial improprieties”.